Century history of the city of Washington and Washington County, Pennsylvania and representative citizens, 20th, Vol. I, Part 47

Author: McFarland, Joseph Fulton; Richmond-Arnold Publishing Co. (Chicago) pbl
Publication date: 1910
Publisher: Chicago, Richmond-Arnold Pub. Co.
Number of Pages: 584


USA > Pennsylvania > Washington County > Washington > Century history of the city of Washington and Washington County, Pennsylvania and representative citizens, 20th, Vol. I > Part 47


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The town of Washington and the whole county do not seem to have had many banking facilities from 1825 to 1836.


The Franklin Bank of Washington; First National Bank of Washington .- On March 9, 1836, an act was passed incorporating the Franklin Bank of Washington, which had in no way any connection with the institution of the same name which had preceded it. During the year 1837 this bank passed through the trying period of general suspension withont difficulty, and it is a matter of historical importance that this bank was one of the three west of the Allegheny Mountains which did not suspend specie payment during and succeeding the time of the late Civil War. On the Ist of January, 1865, the Franklin Bank of Washington became the First National Bank of Washington, having secured a charter from the government on October 14, 1864, as a national associa- tion. C. M. Reed was chosen president ; James Mell- vaine, cashier, and Sammel Cunningham, clerk. On May 1, 1865, Andrew S. Ritchie, Esq., was appointed teller. The history of this bank is continued today in the pres- ent First National Bank, which has the longest continu- ous record of business of any banking institution in Washington County.


The banking experiences of the earlier days were very different from those of today, and great skill and con- stant care were required to avoid not only counterfeit money bnt money issued by banks which were continually getting into financial difficulty. One or two instances as related to the writer by the Hon. Alexander Murdoch, illustrate the nncertainties of the times. He said that onee when coming up the Ohio River on a steamboat- the only method of travel except stage coach-it was rumored that the Bank of Gallipolis was in difficulty. At each landing the reports were worse until the passen- gers before arriving. at Gallipolis, gathered up all the money of that bank and used it to stuff the little brass cannon, firing it as a salute to the town upon their ap- proaeh. On another occasion, when in New York, Mr. Murdoch tendered bills of the Franklin Bank of Wash- ington at his hotel, which were declined. In vain he urged that the bank had never suspended. He then paid


his bill with money of the Bank of Wheeling, which the hotel clerk was satisfied to take because he had heard of that bank. In the region around Pittsburg, at that time, the notes of the Franklin Bank were at par, while those of the Wheeling Bank were received only at a considerable discount.


The legislation of the times was also hard on the banks, and they were not permitted, for a time, to issue notes for less than $5 and there was a time when it was an indietable offeneo to offer paper money in payment of small debts.


Even as late as the Civil War period some of the bankers in Washington would carry suspicious looking money to John C. Hasting, the hardware merchant, whose judgment was considered most superior, and who made a close study of the "Detector."


For many years the First National Bank of Washing- ton stood alone as the only National bank or ineor- porated financial institution in Washington County and among the two or three banks which were in existonce west of the Allegheny Mountains.


The next bank of which we have record was the pri- vate bank started by William Smith in Washington in the year 1828. The name was changed later to William Smith & Sons' Bank by the entry of Wm. W. Smith into partnership. The father died, then the son and now the manager is William MeK. Smith, grandson of the founder.


In the same year the William Smith bank was started. Joseph Alexander began trading and banking in Monon- gahela City. In 1843 William J. Alexander, a son of Joseph, became partner in the business, under the firm name of J. Alexander & Son, which title continued until 1850, when the banking business was established as the sole business of the firm, the name becoming Alexander & Company. The bank has since then been conducted by members of the Alexander family and Joseph A. Herron, the last named being admitted to the firm in 1871. This was the first bank in the Monongahela Valley, and is now one of the strongest.


Another of the pioneer private banking houses of Washington was the Hazlett Bank, whose history dates back to the year 1837. It was started by Samuel Haz- lett and continued by his son Samuel. The owner became financially embarrassed and was forced to close in 1897. The failure of Sanmel Hazlett is said to be on account of deposits with the West Penn Bank of Pittsburg. of which James H. Hopkins, born and raised in Wash- ington, was the prominent owner.


Canonsburg has had at least one banking institution for more than half a century. On July 21, 1853, appli- cation was made to the legislature of Pennsylvania for the incorporation of the Canonsburg Savings Fund So- ciety, with a capital of $50,000. No action. however.


258


HISTORY OF WASHINGTON COUNTY


was taken until 1855, when the institution was incor- porated by act approved April 20 of that year. The bank soon afterward went into operation, and was in existence for ahout fifteen years, closing in 9pril, 1869. Its first cashier was Samuel R. Williams, who had previ- ously held the chair of natural sciences in Jefferson col- lege. For several years preceding the closing of the in- stitution the cashiership was filled by John F. Black.


The Farmers' Bank of Deposit, of Canonshurg, was organized in March, 1865. Its board of directors was constituted as follows: James Craighead, president ; B. South, secretary and treasurer; R. C. Hamilton, John Chamhers and Adam Edgar. This institution continued in business until January, 1880, when it was closed.


The People's Bank of Monongahela City was organ- ized in 1870 and was in 1891 changed from a state bank to a trust company, being then known as. the Mononga- hela City Trust Company.


In the same year that the People's Bank was organ- ized, or in the fall of 1870, the private banking house of Hopkins, Wright & Co., composed of William Hopkins, Joshua Wright and James H. Hopkins was formed in Washington and existed for about six years. James H. Hopkins retired to engage in hanking in Pittsburg under the name of West Penn Bank. This venture failed and Joshua Wright, his former partner, ceased to do banking business.


In 1873 the Washington Savings Bank was organized with a capital stock of $100,000, with James W. Kuntz, president ; William MeKinan, vice-president, and Samuel Ruth, cashier. The bank hecame financially embarrassed in 1892 and was closed.


The second national bank in the county was the Bur- gettstown National Bank, organized February 4, 1879.


The Canonshurg Savings Bank was opened for busi- ness January 14, 1880. The business was closed hy the stockholders Febuary 9, 1882, and the property trans- ferred to the Canonsburg Bank, Limited. The last men- tioned institution was organized with a capital of $50,- 000, and opened for husiness on the 9th of February, 1882. The officers of this concern were: William Mar- tin, president; J. C. MeNary. secretary and treasurer; Adam Edgar, S. B. MePeak and W. R. McConnell, direc- tors; Henry Bennett, assistant cashier.


This bank continued under the same name and mau- agement until May 12, 1891, when it was reorganized under the national hanking laws and became the First National Bank of Canonsburg, with William Martin as its president and George D. MeNutt, cashier.


The third hauk in the county and the second bank in Washington to be organized under a national charter was the Citizens National Bank, incorporated on the 24th day of August, 1885.


The Farmers and Mechanics National Bank of Wash-


ington was organized in 1890, with a capital of $100,000. It continned as a national association nntil 1901, when its capital stock was taken over by the Washington Trust Company.


The First National Bank of Claysville was organized in 1890 and the First National of California the follow- ing year. The next year, or 1892, the First National of McDonald was organized. The People's National Bank of McDonald was established in 1897.


The act of March 14, 1900, and the great increase of coal sales produced great activity in creating national banks. This act empowered the Comptroller of Cur- reney to permit the organizations of banks with mini- mum capital of $25,000 in places of population not over 3,000. Fifteen national banks were organized in Washington County within five years after the passage of this act. Since then many other national banks have been organized until at the present time there are in the county 27 national banks. Four State banks in the county have grown up siuce 1898. The few organized prior to that date have taken out national association charters. One of the four, the Bank of Coal Center, was closed early in 1909.


The People's Bank of California was temporarily closed during 1907 and was opened again in 1908.


The First National Bank of Claysville was closed in 1904 and its business settled by a receiver.


The trust companies entered the field of banking with authority to do everything a bank conld do except to issue national notes or currency. They could do many things a national bank was not permitted to do. It having hecome necessary the government gave the na- tional banks greater scope and authority to accommo- date the people.


The trust companies being financial institutions or- ganized and operated under the laws of the Common- wealth, have added much to the financial and commercial upbuilding of Washington County.


The Dime Savings Institution of Washington was really the first financial enterprise to take up the busi- ness which is now conducted largely by the trust com- panies. It began business June 3, 1893, having been incorporated October 10, 1892. This institution was taken over by the Title Guarantee and Trust Company of Washington in September, 1897, and was afterwards consolidated with the Washington Trust Company. In 1901 both the Citizens Trust Company of Canonsburg and the Charleroi Savings and Trust Company were or- ganized. The number of these companies increased until at the present time there are eight trust companies in business in the county.


The following is a list of all the National and State banks and trust companies in the county with their state- ments as issued December 31, 1908. for the year 1908:


Names of National Banks.


Date of Organizatlou. Aug.


Capital.


Deposits.


Resources.


Investments. Pald In 1908. Organization


Citizens National. Washingtou.


5, 1885


$ 200.000.00 $1,059,799.25 $ 2,766,048.95 $ 4.225.848.20 $ 3,557,166.46 $ 18.000.00 $ 222.000.00


First National, Washington.


.Oct.


14. 1836


400,000.00


28.456.47


2.254.042.63


1.927,145.49


5,000.00


45.000.00


First National. Canonsburg.


July


1. 1891


100.000.00


214.172.55


785.240.47


768,823.2


12.000.00


81,600.00


Burgettstown National . .


. Feb.


4, 1879


100,000.00


70.502.89


812.815.SS


1.092.893.21


$12.896.79


12,000.00


252,000.00


The National. Claysville.


23,


1890


50.000.00


133.000.00


700.000.00


720,000.00


3,000.00


37,500.00


First National, Charleroi.


Mar.


18, 1891


50,000.00


129.669.40


671.603.49


872.272.89


705,673.85


4.000.00


56,500.00


First National. Donora ..


.July


15, 1901


75,000.00


43,000.00


400.000.00


600,000.00


815,000.00


6,000.00


24.750.00


First National. California


Oct.


19, 1891


50,000.00


90.535.00


596,523.68


422.24.69


4.500.00


54,750.00


First National. Monongahela ...


Nov.


30, 1901


50.000.00


30.806.66


561,317.03


418.167.97


3.000.00


13.500.00


Washington National, Burgettstown.


. Nov.


1903


50,000.00


2.820.00


422.223.63


269,973.04


.


Midway National Bauk ..


Feb.


1903


50.000.00


40.335.25


349.991.67


200.471.9%


1,500.00


1.500.00


First National, Roscoe. .


. Oct.


22,


1900


50.000.00


22.127.55


328.386.S8


199.395.45


2,000.00


21.500.00


First National, Scenery Hill.


June


1904


25,000.00


16,715.89


312.461.01


219.667.24


750.00


.00.00


l'irst National, Houston .. .


. July


20,


1901


25,000.00


15,135.00


150.000.00


150.350.00


750.00


$50.00


First National. Fredericktown


Aug.


5.


1901


25.000.00


17.190.94


130,000.00


137.021.46


2,250.00


3.550.00


Farmers National, Hickory ..


Aug.


17,


1904


25,000.00


8,796.59


133.790.33


140.807.51


1.500.00


. 1.500.00


Bentleyville National. . .


May


1,


1906


25.000.00


4,313.85


131,739.91


167,303.76


500.00


500.00


National Bank of Ellsworth ..


July


1903


25.000.00


5,212.81


98,449.93


128.257.44


43.205.30


105,710.39


1.250.00


1.250.00


First National. Millshoro ...


. June


24,


1904


25.000.00


258.42


51,869.27


108,386.65


62.529.52


Farmers & Miuers, Bentleyville.


Mar.


14, 1908


50,000.00


26.569.3-1


88,460.34


54.256.08


1,500.00


1.500.00


Farmers National. Claysville ..


Jan.


2,


1909


50.000.00


$1,675,000.00 $2.212,012.85 $11.545,941.56 $16.827.107.64 $13,033.676.64 $ 79.000.00 $2,159.850.00


.


Loans and


Dividends


Pald Since


Nnmes of State Banks


Date of Organization.


Capital.


Surplus and Profits.


Deposits.


Resources.


Investments. Paid In 1908. Organization


*Bank of Charleroi ..


.Jan. 24. 1898


$ 75,000.00 $ 192,413.66 $


958.148.35 $ 1.225,562.01 $ 1.047,593.06 $


Bank of Donora ...


. Dec.


27, 1901


100.000.00


31,000.00


223.703.79


:56.244.55


196,707.87


3,000.00


41.250.00 18,000.00


# Peoples, Californlat


1900


75.000.00


20.139.39


234.893.92


350,617.91


138.428.09


*Bank of Coal Center


Mar.


7, 1904


50,000.00


12.995.11


76,828.67


140,260.03


62,208.00


Totals


300,000.00 $ 256,548.16 $ 1.493,574.73 $ 2,052,684.50 $ 1.444,937.62 $ 10.500.00 $


59.250.00


Date of Organization.


Capital.


Surplus and Profits.


Deposits.


Resources.


Investments. Paid in 190S. Organization


Washington. Washington ...


May 26. 1902 $ 500,000.00 $


712.729.20 $ 2.523.960.96 $ 3,738.905.81 $ 2,584.617.41 $ 30.000.00 $ 120.000.00


Real Estate. Washington.


April,


1902


200,000.00


183,065.31


778.615.77


1,161,681.08


1.004.729.18


16.000.00


32.000.00 63,000.00


I'nlon, Washington. .


Mar.


27. 1902


250.000.00


179,192.61


546.909,68


816,606.55


644,013.57


19,712.00


$8.543.00


Citizens. Canonsburg.


May


1. 1901


125.000.00


105,570.61


562,226.68


806.010.51


608,602.38


7,500.00


30.000.00


Charleroi Savings and Trust Co.


Feb.


21. 1901


125,000.00


17.677.90


333.624.50


476,306.40


344,423.58


5,000.00


25.000.00


McDonald Savings and Trust Co


. Jan.


1. 1904


125,000.00


21,000.00


280.000.00


375,000.00


330,790.00


2.500.00


25.000.00


I'nion, Donora


. May,


1903


125,000.00


7.000.00


115.000.00


245.000.00


210,000.00


5.000.00


5.000.00


Totals


$1.600.000.00 $1.306,422.05


$ 5.796,506.00 $ 8,645,875.18 $ 6,925.763.62 $ 94,712.00 $ 388.543.00


Grand totals.


$3,575,000.00 $3,774.983.06 $18.776.022.29 $27,525.667.32 $21,404,377.88 $184,212.00 $2,607.643.00


* Statement of November 27, 1908.


Fifteen National Banks, three State Banks and two Trust Companles show


muuch less deposits than last year.


; This bank's statement did not appear last year, as li wns temporarily closed.


259


HISTORY OF WASHINGTON COUNTY


June


12, 1892


50,000.00


192.921.71


1,425.586.16 020.051.69


1,178,933.40


957,634.14


1.116,213.02


900,000.00


403.522.86


466.476.17


201.203.63


209.656.42


201.989.62


250.745.12


257.912.29


190,000.00


.


Sept.


1902


25,000.00


14.000.00


195.000.00


200.000.00


West Alexander National ...


Oct.


1 -


1901


25.000.00


27,595.42


125.084.16


197,629.32


151.639.99


* Peoples, West Alexander.


1907


25,000.00


27.262.90


93.413.56


170.075.65


118.081.31


Lincoln National. Avella. .


.Aug.


1%,


1905


25,000.00


6.932.89


98.827.07


137.259.96


First National, Cecil .. . .


. Dec.


29,


1903


25,000.00


3,451.11


53.257.53


110.705.64


00.750.84


Monongahela City Trust Co


. June


25.


1901


150.000.00


80,196.42


796.168.41


1.026.364.83


898.497.47


9,000.00


Dividends


Loans and


Dividends


Pald Since


Names of Trust Companies.


.


..


Totals


Loans and Dividends


Dividends Pald Since


Surplus and Profits.


1,340,000.00


First National, McDonald.


First National, Finleyville.


215,030.96


194.966.38


126,493.67


7,500.00 $


Dividends


260


HISTORY OF WASHINGTON COUNTY


Ranking the bauks according to their total resources The Citizens National of Washiugtou holds uudisputed first place-also in its relation of capital to surplus and in its deposits. Its total resources are over $4,000,000, being the first bank to pass this high mark. The Wash- ington Trust Company is a close second. The First National Bank of Washington is still second among the national banks in total resources. The First National of MeDonald third and the First National of Canons- burg fourth. The MeDonald Bank stands second in the county in the value of its bauk stock. The only other


national bank which has passed the $1,000,000 mark iu total resources is the Burgettstown National.


Of the State banks and trust companies, The Washing- ton Trust Company leads in resources with over $3,700,- 000. The Bank of Charleroi is second and the Real Estate Trust Company of Washington third. The Mo- nongahela City Trust Company is the only other State institution which has passed the million mark.


The following table shows the value of bank stock, rate of dividend and amount of dividends of the financial institutions of the county :


National Banks-


Book Value of Stock


Book Value of Stock


Rate


of Div- Amount of


Capital.


Dec. 31, 1901. Dec. 31, 1908. idends. Dividends.


Citizeus' Natioual, Washington


$200,000


$587.48


$630.00


8-12


$18,000


First National, McDonald.


50,000


458.07


485.85


10


5,000


The National, Claysville.


50,000


333.00


366.00


6


3,000


First National, Charleroi .. .


50,000


380.00


359.34


S


4,000


First National, Cauonsburg.


100,000


305.85


314.17


12


12,000


First National, California ..


50,000


263.95


281.07


9


4,500


West Alexander National.


25,000


207.00


210.38


9


2,250


People's National, West Alexander.


25,000


...


209.00


6


1,500


Midway National


50,000


172.11


180.67


3


1,500


Burgettstown National


100,000


166.62


170.05


12


12,000


First National, Fredericktown.


25,000


155.00


168.76


. ..


.. ..


First National, Scenery Hill.


25,000


156.00


166.86


First National, Monongahela


50,000


155.20


161.61


6


3,000


First National, Houston.


25,000


160.00


160.54


3


750


First National, Donora


75,000


163.70


157.33


8


6,000


Washington National, Burgettstown


50,000


146.22


156.40


3


750


First National, Roscoe.


50,000


139.37


144.25


6


3,000


Farmers' National, Hickory


25,000


120.00


129.03


. .


.... .


Lincoln Natioual, Avella.


25,000


118.00


127.73


. .


.....


National of Ellsworth


25,000


103.23


120.90


...


....


Bentleyville National


25,000


112.00


117.25


2


500


First National, Cecil.


25,000


109.00


113.80


5


1,250


First National, Washington.


400,000


171.78


107.11


. .


. .


..


1,500


Farmers' National, Claysville.


50,000


. ...


. . .


.....


State Banks and Trust Companies-


Bank of Charleroi ..


75,000


360.00


356.50


10


7,500


Washington Trust, Washington.


500,000


233.00


242.54


6


30,000


Citizens', Canonsburg .


125,000


180.05


192.45


6


7,500


Real Estate Trust, Washington


200,000


189.26


191.82


8


16,000


Union Trust, Washington. .


492,800


*69.72


86.00


4


19,712


Monongahela City Trust Co.


150,000


149.84


164.16


6


9,000


Bank of Donora ...


100,000


128.50


131.00


3


3,000


People's of California .


75,000


..


.


.


.... .


Bank of Coal Center.


50,000


125.97


126.00


. .


... . .


McDonald Savings & Trust Co


125,000


123.54


116.80


2


2,500


Charleroi Savings & Trust Co.


125,000


117.00


114.13


4


5,000


Union Trust, Donora .


125,000


105.00


105.60


5,000


*Par value, $50.00.


During the past year more shares of bank stock changed hands than during any previous period for many years. This was natural-as stocks of all kinds were offered in the markets, many of them selling much below their real


value. It was a year of shrinkage in stocks because the sellers were more plentiful than the buyers. Many people were forced to unload at most any price. On the ex- changes the listed stocks and securities took a tumble.


. ..


..


First National, Finleyville


25,000


180.00


156.00


First National, Millsboro.


25,000


125.05


135.18


Farmers' and. Miners, Bentleyville.


50,000


126.85


261


HISTORY OF WASHINGTON COUNTY


Yet during the past year some of the local bank storks sokl at the highest figure that was ever realized in this county. Seven hundred dollars was paid for several shares of the Citizens National Bank of Washington stock. Par value of the stock is $100. The surplus Fund is now over $1,060,000. At the close of the year the directors increased the quarterly dividend from 2 to 3 per cent.


The wonderful growth of the banks of Washington County sinee 1901 is seen by the following interesting statistics :


Year. Capital. Surplus & Profits. Deposits.


1901


$1,490,000


$1,100,770 $6,537,580


1902.


2.615,000


2,144,296 12,218,949


1903.


3,497,050


2,900,852


13,591,083


1904.


3,630,500


3,169,748 14,450,000


1905.


3,932,800


3,243,589 16,666,389


1906.


3,932,800


3,659,993


18,319,208


1907.


3,642,800


3,810,958


18,740,200


1908.


3,575,000


3,774,983 18,776,022


Since 1901 the capital has more than doubled, the surplus and profits more than tripled and the deposits increased almost threefold.


The growth of our banks and the increase in their business is an exhibition of the county's material prog- ress. The banks of Washington County have attracted the attention of the outside business world for in the safety which they afford to depositors they outrival those of the large majority of the counties of this country.


One naturally asks why the Washington County banks have been able to make such a phenomenal reeord. The answer is found in the phenomenal development of the county during the period since after the discovery of oil about 1885, but most particularly since about the year 1900, when the coal fields were purchased and opened up so extensively.


This has been a period of the county's greatest natural growth. The vast aereage of eoal territory has been brought into the market. The transactions which have placed the ownership of one-half the area of the county 's coal lands in the hands of coal operators and speculators and taken them from the ownership of the farmers has, in two ways effeeted the general business conditions of the county and been responsible for the rapid increase in the resourees of our financial institutions. First-it has brought millions of dollars of ready cash to the farmers, many of whom have placed their money in the banks or have invested it in home enterprises which have developed new lines of business. Seeond-the sale of the eoal lands has resulted in the beginning of mining operations with railroad building and the general in- erease in property valuations which have very noticeably affeeted the county's material welfare.


It ean then be well said that the prodigious increase in banking in Washington County during the past eight


years is the reflection of the coal development and the increase in manufacturing lines. The county is in the center of the greatest bituminous coal field of the workel and each succeeding year shows that the great manu. Facturing enterprises of the country are seeking locations near the center of the fuel supply. Therefore, the years which are to come, shoukl show a continuing rapid in- crease in its banking business reflecting the eonse. quential natural development of the county.


The year 1908 goes down in history as a critical one among the business interests of this country. It was known as a panie year-a year of business depression. Factories and mills were closed, many substantial enter- prises went to the wall carrying with them many stable and prosperous financial institutions. These times of business depression and even of stagnation cannot be controlled. Washington County suffered with the rest of the country the experiences and the hardships of the times.


Especially was it felt in the river districts and this is shown in the bank statements where there were fallings off in deposits and also in profits. No bank can expect to keep up its total deposits in a year when factories are closed down, to the mark reached when all industrial enterprises are running full and are on the high tide of prosperity.


Yet with all the hard times, and the effects of them felt most keenly by the financial enterprises of the coun- ty not one suspended or elosed its doors during the year. A few of the banks were hit harder than others-they happened to have securities of business and commercial enterprises which were good-but which became of but little value when the coneerns were obliged to go into the hands of a receiver owing to conditions over which the banks, or perhaps they themselves had nothing to do.


Washington County therefore is most fortunate in the character and stability of its banking enterprises-and it is creditable to the othieers and management of these institutions that they were able to weather the storms of the past year in business and to come out in good condition.


The following is a directory of all the banks in Wash- ington County with the exception of the private banks:


CITIZENS NATIONAL BANK, WASHINGTON.


Officers-John W. Donnan, president ; John H. Don- nan, viee president; N. R. Baker, eashier; R. B. Leslie, assistant eashier.


Direetors-John W. Donnan, A. S. Eagleson, James Kuntz, Jr., John Slater, R. V. Johnson, A. G. Happer, Alvan Donnan, Ernest F. Acheson, James M. Miller, John H. Donnan, Albert J. Allison.




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